Today, Thursday, the annual financial results of ACWA Power showed an increase in its net profits by 93.8% in the fourth quarter of 2022, to about 657 million riyals, compared to about 339 million riyals in the fourth quarter of 2021.
According to the company’s statement on “Saudi Tadawul”, its net profits increased by 103% in 2022 to about 1.54 billion riyals, after zakat and tax, compared to about 759 million riyals in 2021.
ACWA Power said that the increase in the net profit attributable to the shareholders of the parent company for the year 2022 compared to 2021 is mainly due to income from operating operations before calculating the cost of impairment and other expenses, which recorded higher numbers than the previous year, due to the contribution of projects that achieved initial commercial operation during The year or after the full year, in addition to operating and maintenance income from projects achieved during or after 2021, as well as an increase in the contribution of development and construction management services to projects that achieved financial closure during the year.
In addition to the decrease in the provisions for project development and write-off of costs, the net reverse provisions, compared to the provisions and amounts written off in 2021 AD, and the calculation of compensation for damages caused and insurance recovery in relation to accidents that occurred during the year 2022 AD and the periods prior to it.
As well as the increase in expenses related to the long-term employee incentive plan in 2021 AD, which were calculated for the year 2021 AD and the entire year 2020 AD.
It indicated a decrease in the impairment loss in 2022, mainly due to calculating the expenses for granting the initial public offering for one time in 2021, partially offset by calculating some claims and settlements with suppliers and the increase in value fees.
Other income increased, due to the increase in income from deposits in addition to gains from the change in the fair value of derivatives, income related to early settlement of long-term loan and financing facilities, and termination of hedging instruments related to the facilities.